Ties Weekly Update #21

9 September, 2004

CONTINUING EXCELLENT PRODUCTION

As of September 9, 2004, we have installed over 175,000 of the 235,000 ties now scheduled to be installed by November 24^th 2004. The tie crews had an excellent week of production this week!!

¨ As of September 9^th over 225,000 ties have been delivered to our properties and are either installed, on the ground, or in the process of being unloaded by the Brandt truck.

¨ Considering the siding additions and extensions and the Florence connection, we now expect to install 235,000 ties this production season.

¨ Wes Risseeuw’s DM&E east tie gang used nearly 2,000 ties installing the extension for the siding at De Smet which was completed last week

¨ The Railworks tie crew started working on Wednesday the 8^th around Iroquois and will install ties between MP 328 and Huron thru mid- October.

¨ The LA Colo tie gang will return to the Huron sub around MP 232 later this month and will install ties between Tracy and the state line.

¨ Foreman Steve Koser’s crew has been installing curve rail on the Mason City, Marquette and Chicago subs the past several weeks. They will spend most of the remainder of the year on this curve patch project, except for a short time in September when they will install about 5,000 ties in the Quad Cities area.

¨ Jim Nemec’s west tie gang will complete their tie project near Dakota Jct. later this week and will then move northward on the lower Black Hills sub toward the Smithwick area where they will complete the Black Hills portion of their project.

¨ The RJ Corman tie crew completed their portion of the 2004 tie project in mid-August between Lake Preston and the state line.